Important for the bank loan
- Compare bank offers
Before applying for a bank loan, you should always compare several providers. Financedel’s free credit comparison provides low-priced offers in just a few clicks.
- Optimize creditworthiness
Offer your own collateral to lower lending rates. With a second borrower you can get more favorable terms.
- Choose a term wisely
Shorter terms reduce overall credit costs.
For many Germans, bank credit is still the easiest way to make an urgent purchase or fulfill greater wishes.
If you pay attention to some aspects of credit selection, you are sure to find the best loan for your purpose. On this page you will find practical tips and information about bank credit.
What is a bank loan?
Basically, every loan you take out of a bank is a bank loan. There are only a few alternatives.
So you could borrow money from friends or relatives or even ask the employer for a loan. However, you have the problem that you owe something to people you know. Not infrequently, loans to friends can lead to strife. Or what about the repayment when the friendship comes to an end? It is not for nothing that the saying goes, “When money stops friendship”.
A bank loan offers great advantages in this regard. They owe money to the bank and therefore owes the service provider only the monthly installments and nothing more.
Banks grant different types of loans. One of the most common loans is the 3000 euro loan. This is not really a special credit group, but rather a popular loan amount for consumer credit.
Whether for a trip or the purchase of furniture, in Germany every year many different wishes are fulfilled with such a bank loan. In contrast, larger loans such as a € 10,000 loan are usually associated with major purchases. Often, these bank loans are used as student loans.
All these loans are classic installment loans. Thus, the typical bank loan is an installment loan. In addition, this type of loan mainly describes small loans with amounts below € 5,000. Applying for these loans usually suffices for one’s own income and a good credit rating.
Other bank loans that go beyond small loans
- Real estate loans or mortgage lending
A bank loan for the home purchase requires a longer planning. Typically, these loans are associated with a very long term and an extensive financing plan. The mortgages or chattel mortgages of life insurance policies serve as collateral here.
- follow-up financing
In a follow-up financing is a bank loan, which is used at the end of the mortgage term, following to pay off the remaining debt. Follow-up financing usually has higher five-digit totals.
- car loan
The car loan does not necessarily have to be a bank loan. But borrowers usually have an advantage in negotiating rebates by paying out a bank loan for car finance. The car loan is a purpose-bound loan for it.
- mortgage loan
With this bank loan you encumber a property or a property and can borrow money for renovations or complex repairs on the house at favorable conditions from the bank.
How to find a cheap bank loan
There are many different credit institutions in Germany, which compete for the favor of customers. As a result, you, as a borrower, can benefit from favorable offers.
With the following three tips you will find a cheap bank loan:
- compare offers
Use the free loan calculator from Financedel. For the calculator you only need your desired loan amount and the duration as well as the purpose. Using solid data such as total loan amount and monthly exposure, you can compare many different banks. So you do not have to ask each bank individually.
- Involve second borrower
If you apply for a loan for two, you can benefit from much more favorable conditions. For the bank, a second borrower provides greater security. This usually “rewards” them with a more favorable interest rate.
- Offer collateral
For example, if you have the option of offering a registered mortgage as collateral for a bank loan, you can significantly reduce the cost of borrowing.
You should pay attention to that
There are several metrics that should be considered before the loan is closed.
|Effective interest rate||The annual percentage rate of charge describes the gross return on your loan that you must pay each year for the loan amount. In contrast to net loan details, the annual percentage rate already includes any processing fees or other additional costs. Pay attention to the lowest possible annual percentage rate for your desired loan!|
|unscheduled||The earlier the loan is paid off, the lower the monthly burden. If you have free capital during the term, you should be able to use it for free special repayments. When making credit terms, make sure that you do not incur any fees when you make special repayments.|
|running time||Choose your desired monthly rate wisely. It should not be too high, so you have enough financial space every month. But you should not set the rate too low, so you do not unnecessarily increase the cost of borrowing. It is best to use a household calculator to determine the possible monthly rate.|
|fees||Some banks charge fees if you want to terminate the loan before the end of the term. Check the loan offer to see exactly if such fees apply.|
Remaining debt insurance is not always a must
For smaller loans, do not take out a residual debt insurance. It can only increase the small loan unnecessarily. For example, such an insurance can cost more than € 300 for the entire life of a € 2,000 loan.
Typically, a typical bank loan is disassociated. This means that you may freely use the money for your wishes. However, some loans such as classic car loan or home loan are earmarked. The money may be used in this case only for the specified purpose.
Schedule processing time
From the application for a bank loan to the payment of the loan amount may take several working days. This applies in particular if you apply for a bank loan online and the bank still requests documents or you can only send these documents by post.
In addition, the processing time varies from bank to bank, so that no blanket statement can be made. However, you can always accelerate the process by providing all the necessary paperwork with your loan application, for example proof of income.
You should pay attention to this when making the loan request
When you make a loan request, you should make sure that it is entered as a loan condition request at the Private credit. These inquiries are provided with the abbreviation “KK” and are Private credit-neutral. A credit request with the abbreviation AK is also noted in the Private credit directory and is visible to other banks for ten days. If there are many AK loan requests, this can have a negative effect on your Private credit score.
However, with the Financedel loan calculator you are on the safe side. All inquiries via the portal are Private credit-neutral.
House bank is not always cheapest bank
The credit comparison has the advantage that you can really get the best conditions. The house bank does not always have the best bank loan for you. The only advantage: The bank already knows your financial situation very well and needs no further collateral. This is the case, for example, if you have already successfully repaid a loan with this bank or have your salary account with the bank.
Step by step to the bank loan
To apply for a bank loan, you can take the following six steps.
- Calculate loan amount
First, calculate the required loan amount. In the case of bank loans for real estate financing, you should also include the existing equity capital. This is also possible with a car finance, where you can reduce the loan amount by a down payment.
- revenue and expenditure account
Be sure to keep a household bill in which you bill regular monthly income with regular expenses. Be very precise and honest with yourself. For example, expenses for the cinema or for the gym are part of the regular expenses. With the help of the household bill you determine the optimal credit rate.
- Compare loans
Compare several loans together. A good comparison criterion is the annual percentage rate. In addition to the duration, it determines how much the total loan amount and the monthly installments will be.
- Send application
You can fill in and submit your loan application online at almost every bank online today. If documents are required, you must send them by post to the bank.
This happens before the loan is granted
Before a bank awards a loan, it checks your creditworthiness. These include the almost mandatory Private credit query. Likewise, you must be able to prove a regular income. For certain loan amounts, a minimum income is required. Basically, with all loans: The higher the income, the better.
More evidence as a self-employed
For the loan application, you usually need your salary statements and sometimes even bank statements of the last three months. Self-employed often have to provide more evidence, such as the tax returns of the previous two years or a business evaluation (BWA).
- Postident perform
In order to clearly identify yourself as a borrower, you usually have to carry out the so-called post -ident procedure. To do this, print out the Postident coupon at home and look for a post office. There you are clearly legitimized by your identity card or passport. The completed coupon will be sent to the bank along with your full credit application and all necessary documents.
- loan disbursement
After a thorough review of your records, your credit will be approved. It only takes a few working days for the loan amount to be transferred to your account.
questions and answers
How do I get a bank loan for starting my business?
If you need a start-up loan, you can contact the Kreditanstalt für Wiederaufbau (KfW). The state-owned bank promotes entrepreneurs with special bank loans.
What can I do if, after receiving my loan, I have found a cheaper loan with another bank?
Most bank loans can be withdrawn up to 14 days after conclusion of the contract without giving any reason. Read exactly in the terms and conditions before, if this also applies to your credit. If you can still revoke, you have the opportunity to take advantage of the cheaper credit of the other bank. If the withdrawal period has expired, you can still cancel. However, you have to reckon with bank fees. If the interest on the new loan is significantly cheaper, so that the savings exceed the fees payable, a change may be worthwhile.
Is there a processing fee for bank loans?
Since a ruling by the Federal Court, banks are generally no longer allowed to demand loan processing fees. For more information, see this article on loan processing fees http://www.Financedel.de/wissen/ratgeber/kreditbearbeitungsgebuehren.
What are alternatives to bank credit?
If you do not want to borrow money from a bank, you can borrow money from friends or relatives. Also possible are various Internet portals, where private customers can borrow money from other lenders who act as investors. The correct handling of these transactions is then handled by a bank as trustee.
I am no longer able to repay the loan – what now?
If you can not repay your loan, it is essential to seek the interview with the bank. In some cases, banks may offer a repayment pause. If the financial situation is very tense, you can, for example, go to a debt counseling service.
What are the advantages and disadvantages of bank loans?
The advantage of having a bank loan is that you are lending money without further commitment and commitment. Thus, the bank loan differs from a loan that you get from parents or friends. However, the disadvantage of a bank loan is that you have to pay interest on the borrowed money that friends or relatives do not usually charge.